Ready to be a Homeowner?

Since property is one of the most expensive purchases of a person’s life, it’s important to be sure that you’re ready for it. With that said, here are questions to consider:

Are you ready to be a homeowner?

It is critical to consider whether you have saved enough money to make a down payment in addition to being able to pay your other debts. You must have job stability and a steady income.

How long do you plan on living in your home?

Real estate is not always an investment that grows in value. No one can predict what will happen within your local housing market. If you plan to sell your home in the next few years, realize that the property may not increase substantially in value or may actually lose value. Ultimately, it’s possible to owe more on a mortgage than the home equals in value.

What is your estimated monthly payment for the home?

In addition to the monthly payment for principal and interest, you will have to pay for taxes and insurance and possibly homeowner association dues. If your down payment is less than 20 percent, your lender may require that you pay the added expense for mortgage insurance.

What are the other costs of owning a home?

Be realistic about the costs of owning a home like heating and cooling and other utilities. You will generally need to budget for repairs and routine maintenance of your home, especially if you buy an older home.

For information on homeowner’s title insurance, contact Cambridge Title Company by phone at 224.330.1886 or by email at info@cambridgetitleco.com.

Why Conduct a Title Search?

You may have noticed on our attorney and lender services pages, one of the services Cambridge Title Company offers is a tract search, otherwise known as a title search. But what does this mean for a prospective home buyer?

By definition, a title (tract) search conducted to discover whether there are any defects in the ownership of a particular "tract" of land.

Let's put it this way: You're in the process of wrapping up a home closing. Both parties have agreed to the terms and the financial arrangements have been put into place. So what happens now?

The title insurance agency, let's say Cambridge Title Company, for example, conducts a title search. This search recovers all sorts of information, including whether the seller actually has the right to sell the property you're on the cusp of purchasing and what rights you'll have to the property in question.

Without this title search, you're left vulnerable to a plethora of issues. For instance, the actual owner can show up down the line and claim that you're living on his or her property.

This is why home buyers purchase title insurance. For a one-time fee, homeowners are extended a wide array of protections for their homes. As part of the title search process, title insurance agencies determine the insurability of a property's title and protect you from any legal expenses at a later point in time.

By conducting a title search you're gaining five primary items:

• chain of title
• tax search
• report on possession
• judgment and name search
• commitment

Over the next five weeks, we'll dive a little deeper into what each of these items is and how they all affect the title insurance process.

For more information on title insurance, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Pros & Cons of Purchasing a Manufactured Home

For the past month, Cambridge Title Company has discussed the pros and cons of purchasing various types of homes, including the single-family home, the townhome, and the condominium. Today, we wrap up this segment by discussing the pros and cons of purchasing a manufactured home, also known as a mobile home.

For starters, a manufactured home is a variation of a mobile home. However, these units differ from single-family homes in the sense that they are built remote from the property. That said, final assembly usually occurs on the actual property.

As always, we'll get started with the pros.

Pros

By purchasing a manufactured home, you can easily transport your home in the event that you relocated to another property. In addition, this is also usually cheaper than purchasing a single-family home while simultaneously granting the same benefits of privacy and customization.

Cons

Although you can customize the manufactured home as you please, you'll probably face architectural limitations since they're premade elsewhere. More so, the lower price comes at the cost of reduced durability and longevity, meaning another home purchase could be in the not-so-distant future.

For more information on title insurance and escrow services, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Pros & Cons of Purchasing a Condo

Last week, we discussed the pros and cons of purchasing a townhouse. This week, Cambridge Title Company is going to talk about another type of home: the condominium. Similar to last week, we'll be reviewing the various pros and cons to purchasing this type of property unit. With that said, let's start with the pros.

Pros

Similar to an apartment in terms of structure and multi-unit design, a condo (or condominium) are usually apartments converted over to this type due to change in property ownership. Condos are usually cheaper than single-family homes or townhouses because of their size. In addition, owners have creative freedom over the unit's interior layout and design.

Cons

On the other hand, condominium owners are often subject to a homeowners' association fee for improvements to the building's exterior. Also, there may be a special assessment mandating a one-time payment of a predetermined amount.

Because the unit is directly linked to neighboring units, owners will face the same disadvantage as townhouse owners: privacy. More so, the building's exterior is usually controlled by the property manager.

For more information on title insurance and escrow services, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Pros & Cons of Purchasing a Townhouse

Last week, we discussed the pros and cons of purchasing a single-family home. This week, Cambridge Title Company is going to talk about another type of home: the townhouse. Similar to last week, we'll be reviewing the various pros and cons to this type of property unit. With that said, let's start with the pros.

Pros

A townhouse can be described as a home attached to one or more house, as shown in the image to the right. Typically, townhouses are located on a specific property which is owned by the townhouse owner. Townhouses range in size and architecture, and can include duplexes and even triplexes.

Because townhouses are attached on either or both sides to additional townhouses, they offer heightened security created by the high-density community. With such you can also save on exterior maintenance, due to townhouses looking more or less identical to their counterparts. Lastly, because of the dense community, you may have easy access to other amenities, such as a pool, tennis courts, exercise facilities, and more.

Cons

The most immediate downsides are lack of creative freedom and privacy compared to that of which you would find in a single-family home. With buildings on either immediate side, privacy is greatly reduced. Similarly, since townhouses are identical to and attached to one another, you can't build out your home as you see fit.

Finally, with the easier access to amenities, you're likely part of a homeowners' association (HOA). Being part of an HOA requires monthly or annual fees in addition to any property-specific fees.

For more information on title insurance and escrow services, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Pros & Cons of Single-Family Homes

Cambridge Title Company offers title insurance to both residential and commercial property buyers. Today, we'd like to explore one of the various types of residential properties available to home buyers: the single-family home.

When buying a home comes to mind, this is probably the most typical example. Single-family homes can be described as free-standing properties that don't share walls with neighboring homes or properties. These properties are built from the ground up and are located on their own set of land.

Pros

The number one pro to owning a single-family home is that you, as the owner, would own everything. This includes the home itself and its accompanying land. Because of this, you can landscape, remodel, or rebuild the home to satisfy your own desires.

Cons

On the other hand, you may find yourself restricted by the deed of the property. In addition, you are solely responsible for all repairs and maintenance along with the aforementioned remodeling work.

Also, you will likely have fewer amenities (money willing) than at a larger complex, such as swimming pools, exercise facilities, and tennis courts. Finally, if the property is part of a subdivision, there also may be homeowners’ association (HOA) fees.

For more information on title insurance and escrow services, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

The Best Closing Time

For business professionals in countless industries, the end of the month is the most hectic period of time. The same can be said for the title insurance industry. So when is the best time to close on your home?

While many aim for the end of the month because of perceived savings, the total costs remain roughly the same. Generally, interest rates are lower towards the beginning of a month. However, buyers then normally pay another note (with lower interest earlier in the month). There is an exception in the event of a Federal Housing Administration loan.

More so, if you're a first-time home buyer, you're probably transitioning from an apartment. Despite the fact that you're purchasing a property, you can't deduct your rent payments on your taxes. Plus, many people would rather move to their new home sooner than later.

In addition, by waiting for a day ranging from the 29th through the 31st, you have a higher chance of competing with numerous others also trying to close on their property on one of those days.

Of course, we haven't even examined the mantra that "time kills deals". While you aren't guaranteed to lose out on selling or buying a property by waiting a few weeks, it wouldn't be unheard of for either side to find a better deal in the eleventh hour.

By closing earlier in the month, you will usually receive better service from everyone in the lending and closing industry.

For more information on home closings, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.